- Shares of Hindustan Aeronautics fell 4.5% after mixed Q4FY26 reviews from brokerages
- HAL reported 5.5% net profit growth to Rs 4,196 crore and 1.8% revenue rise in Q4FY26
- EBITDA fell 4.5% to Rs 5,058 crore, with margins down to 36.3% from 38.6% year-on-year
Shares of Hindustan Aeronautics fell 4.5% on Friday, May 15 as brokerages reviewed January to March quarter performance.
HAL shared dropped 4.5% intraday trading at Rs 4,400.8 apiece. The scrip was trading 4.1% lower at 11:47 am, while the benchmark Nifty 50 was 0.14% up.
Brokerages shared mixed review on Hindustan Aeronautics Q4FY26 results show. Goldman Sachs retained a Neutral stance, and cut its previous target price to Rs 5,225, marking a 18.3% upside from its current price. The brokerage flagged weak execution trends, lower EBITDA margins and subdued manufacturing activity, with Tejas Mk-1A deliveries seen as a key trigger for the stock. Meanwhile, Nomura maintained a 'Buy' rating citing a strong operating performance. The brokerage has set a target price of Rs 5,954 on the stock, around 34.8% upside.
The defence PSU announced quartertly earnings for the fiscal 2025-26 on Thursday, May 14, a reporting 5.5% growth in net profit at Rs 4,196 crore.
In the same quarter previous year, the net profit stood at Rs 3,977 crore. Revenue rose 1.8% to Rs 13, 942 crore in Q4FY26 from Rs 13,700 crore in the corresponding period last year. The defence PSU's EBITDA fell 4.5% to Rs 5,058 crore in the quarter under review from Rs 5,294 crore on an year on year basis.
EBITDA margin stood at 36.3% in Janaury to March quarter of FY26 against 38.6% in the same quarter previous year. The results were declared during the market hours on Thursday. HAL shares rose up to 4.1% after the company announced the fourth quarter results.
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Nomura on Hindustan Aeronautics
- Maintain 'Buy; with target price of Rs 5954
- Q4FY26 numbers beat on operating performance
- Robust ordering in FY26
- Balance sheet improvement continues
Goldman Sachs on Hindustan Aeronautics
- Maintain Neutral; cut target to Rs 5225 from its previous target of Rs 5255
- Robust order book, but yet to see pick up in execution
- EBITDA margin was lower owing to higher than expected other expenses and capitalised expenses
- Provisions dropped by 88% YoY, implying continued subdued manufacturing activity in Q4
- Believe that the delivery of Tejas Mk-1A will be a key milestone for the stock performance
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